Bootstrapping The following annual coupon bond prices with face values of $100 from a risk-free" institution have been observed in the market as of 11/01/2015: Maturity Date 11/01/2016 11/01/2017 11/01/2018 11/01/2019 11/01/2020 11/01/2021 Annual coupon rate 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% Price in decimals 100.00000 100.47299 101.39991 102.54795 103.97606 105.22412 1. Using bootstrapping, calculate the zero rates implied by the market prices above. Round answers to near the nearest basis point. Using the zero rates above, calculate the discount factors in question 1. above Using the zero rates, calculate the arbitrage-free price of a 3-year, 4% annual coupon bond with a par value of $100 maturing on 11/01/2018 Using the zero rates, calculate the coupon rate the "risk-free" institution would need to offer on a three-year annual coupon bond to result in an issuance price of par or $100. Round solution of c to nearest basis point. Here, given a set of zero rates, you'll need to guess a coupon rate that sets the price of the bond equal to par 2. 3. 4